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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: bhagavathi who wrote (38750)	12/9/1998 11:55:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Mula, The banks always find a number of ways to lose their capital, but the big ones are usually bailed out by our taxes. The money centers, like CMB, are into derivatives well beyond their ability to control that trading. They are going to lose huge sums there. Loans to developing countries are not that great. Spreads for domestic loans are coming down. Speculative mortgage derivatives strategies make up a huge part of some asset bases at banks. And, first and foremost, the stocks are grotesquely overpriced because they recognize none of this risk and somehow capitalize negative or no growth as a good thing. It isn't. <G> That being said, the money centers have come down a lot and have only recovered part of their losses in this manic bubble bounce. I have no puts there right now. I prefer the super regionals which are still near all-time highs and the two govt. sponsored hedge funds, Fannie Mae and Freddie Mac, at these prices. MB